Futures contracts are primarily concerned with what aspect of commodities?

Futures contracts are fundamentally focused on the future values of commodities. They serve as agreements to buy or sell a specific quantity of a commodity at a predetermined price, with the transaction set to occur at a later date. This mechanism allows traders and investors to hedge against price fluctuations, speculate on future price movements, and manage risk associated with commodity trading.

By locking in future prices, participants can safeguard their operations against adverse market conditions. For instance, a farmer can sell futures contracts to ensure that they receive a favorable price for their crops, regardless of market changes that might occur before harvest.

In contrast, current market trends examine the present dynamics of supply and demand, historical prices focus on past market behavior, and immediate trade practices relate to current transactional activities in the market. None of these aspects provide the forward-looking perspective that is intrinsic to futures contracts. Thus, focusing on future values is essential for understanding the purpose and utility of these contracts in commodity markets.